TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Nigeria Air project hits stormy weather – Punch

The Citizen by The Citizen
November 22 2022
in Public Affairs
A A
0
Buhari insists on December take-off deadline for Nigeria Air

Even before launching its first flight, the Nigeria Air carrier has run into stormy weather. Last week, a Federal High Court sitting in Ikoyi, Lagos, issued an interim injunction restraining the Federal Government and its partners from taking further action on the proposed airline. This coincided with reports that officials of the Ministry of Aviation are opposed to the management structure proposed by the majority stakeholder and technical partner, Ethiopian Airlines. While the outcome of the court case is being awaited, it is another opportunity to appraise the country’s aviation sector and its revitalisation.

The current turbulence reflects the incoherence and lack of unanimity in the industry. Whereas governments and the aviation industry elsewhere collaborate closely, Nigeria’s situation appears to be the opposite. This is playing out in the Nigeria Air spat.

Displeased with some details of the project in which Ethiopian Airlines has a 49 per cent stake, domestic carriers under the banner of the Airline Operators of Nigeria had approached the court seeking a termination of the deal. They want the court to withdraw the Air Transport Licence issued to the airline by the Nigerian Civil Aviation Authority. The plaintiffs alleged that the company chosen as Transaction Adviser was incorporated only in March 2021 and is linked to the Minister of Aviation, Hadi Sirika. Furthermore, AON alleged that the ATL granted to Nigeria Air evaded the usual security clearance.

Discordance reigns in this critical economic sector. While some operators claim that the incursion of Ethiopian Airlines would send domestic airlines out of business, others disagree. Sirika argues that the carrier is part of the government’s aviation roadmap and would create jobs. He insisted that stakeholders were actually carried along “at every step” and believed the court would vindicate him.

The sector needs revamping through visionary government leadership working in collaboration with private capital. The collapse of the state-owned Nigeria Airways has been followed by the crash of several once-thriving private airlines. Only a few domestic carriers remain going concerns, many others struggle.

Though the IATA estimates that Nigeria’s air transport industry contributes about $600 million to annual GDP, and together with tourism, hospitality, and on-site enterprises employs 20,000 persons and supports another 35,000 jobs, the industry is nowhere near its full potential. In South Africa, the industry provides $5.2 billion of GDP and along with the hospitality and tourism sub-sectors supports 472,000 jobs.

As this newspaper has articulated repeatedly, transforming the sector requires policy initiatives liberalising the operating environment to attract investment. The government rolled out an Aviation Sector Roadmap targeting $14.16 billion contribution to GDP, but Sirika and the President, Major General Muhammadu Buhari (retd.), have been slow in driving reforms, especially in infrastructure provision.

The regime has been foot-dragging on the plan to concession four international airports – Lagos, Abuja, Port Harcourt and Kano — despite statements of such intent dutifully repeated during every national budget consideration cycle.

Instead, both men are obsessed with the state-sponsored national carrier dream, which they incorporated in the roadmap. Sirika’s argument that Nigeria needs one to take advantage of the 80 Bilateral Air Service Agreements it has with other countries is valid. But a government-promoted carrier is a wrong approach. The United States and Western European countries have the largest aviation industries outside China, but their carriers are not government-sponsored enterprises. Most European Union countries have largely privatised their formerly state-owned carriers.

Having one or even multiple national carriers is a desirable objective; but given Nigeria’s odious experience with state-backed commercial enterprises, one that is a government initiative unsettles stakeholders. Past efforts to float a national carrier floundered as major international players avoided doing business with Nigerian officialdom. The country’s reputation for contract violation, policy changes, corruption and bureaucratic muddle has played out in failed partnerships with Virgin Atlantic, KLM and others in the past.

For an emerging economy with its physical size, population and resources, stimulating the aviation and ancillary sectors by liberalising the operating environment will promote domestic and foreign investment. The government should set parameters and designate the best domestic private airlines to utilise the BASAs. Experience around the world proves that enabling private airlines’ growth through competition is better than pouring public funds into failing state enterprises. The government’s role should be restricted to creating a competitive environment for private investment.

Certainly, some world class airlines, including Ethiopian Airlines, are state-owned, but Nigeria has a terrible record in managing state enterprises. Absence of a strong national carrier is a symptom of the sector’s malaise, not the problem. Though the Federal Government holds only five per cent equity in Nigeria Air, the usual cloud of controversy associated with official transactions is already enveloping it.

The government should rather solve the industry’s problems. One is under-investment; privatisation and liberalisation will facilitate investment in airports and hospitality. Redressing the absence of large domestic hangars to undertake routine aircraft maintenance should also be a priority to conserve the N1.04 trillion the Federal Airports Authority of Nigeria says the economy loses yearly to the routine servicing of Nigerian-flagged aircraft abroad.

Effective regulation and investment in advanced navigation aids should be Sirika’s priority, and the government should also solve the aviation fuel scarcity crisis. The AON says over 70 domestic carriers have collapsed in recent years; enabling some to revive and new ones to emerge is the right way to go.

Through fiscal incentives, provision of modern technology, Ireland is a major international aviation hub and according to Cogency Global, a consultancy, over 50 per cent of leased airplanes operating worldwide have a connection to Ireland. Once state-owned, British Airways is now privately-owned by an Anglo-Spanish consortium, and Britain has also privatised its airports.

When the legal dust settles, Buhari and Sirika should implement the airports concession plan, liberalise the operating environment to attract investments, and facilitate the emergence of large, resilient Nigerian airlines. Governments should hands off commercial enterprises entirely and concentrate on regulation and supporting economic sectors.

Previous Post

Soludo threatens to remove politicians’ billboards over tax

Next Post

160 die as earthquake hits Indonesian Java Island

Related Posts

Mass presence of governors in off-cycle elections – Punch
Public Affairs

Mass presence of governors in off-cycle elections – Punch

August 27 2026
Clerics must preach peace, not division – Punch
Public Affairs

Clerics must preach peace, not division – Punch

August 25 2026
Tax reform: Northern senators in closed-door meeting as bill scales second reading
Public Affairs

Tax reform must end multiple taxation – Punch

August 24 2026
BREAKING: Kidnapped Oyo pupils, teachers regain freedom
Public Affairs

Terror victims deserve care – Punch

August 21 2026
Unfilled tertiary education spaces debacle – Punch
Public Affairs

Unfilled tertiary education spaces debacle – Punch

August 20 2026
Reps in rowdy session over motion to summon Tinubu
Public Affairs

Accounting for recovered assets – Punch

August 18 2026
Next Post
160 die as earthquake hits Indonesian Java Island

160 die as earthquake hits Indonesian Java Island

Messi centre stage as Argentina, France begin World Cup title bids

Messi centre stage as Argentina, France begin World Cup title bids

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

by The Editor
August 24 2026
0

...

Adeleke chairmen seize Osun LG secretariats

Adeleke chairmen seize Osun LG secretariats

by The Editor
August 18 2026
0

...

APPOINTMENTS

Tinubu swears in Enitan as new Head of Service

Tinubu swears in Enitan as new Head of Service

by The Editor
August 28 2026
0

...

Tinubu names new Head of Service

Tinubu names new Head of Service

by The Editor
August 19 2026
0

...

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

by The Editor
August 8 2026
0

...

Police IG deploys new CPs to eight states, other formations

Police IG deploys new CPs to eight states, other formations

by The Editor
August 7 2026
0

...

ODDITIES

Umahi files N2.5b defamation lawsuit against bloggers

Umahi files N2.5b defamation lawsuit against bloggers

by The Editor
August 26 2026
0

Scavengers strip Lagos bridges, homes in widespread theft

Scavengers strip Lagos bridges, homes in widespread theft

by The Editor
August 25 2026
0

Man sets mother on fire in Cross River over witchcraft accusation

Man sets mother on fire in Cross River over witchcraft accusation

by The Editor
August 20 2026
0

GLOBAL NEWS

WHO declares global health emergency over Ebola outbreak in Congo, Uganda

WHO confirms Uganda Ebola-free, as virus continues spread in DRC

by The Editor
August 28 2026
0

...

Nepal flash floods claim160 lives, hundreds still missing after deadly surge

Nepal flash floods claim160 lives, hundreds still missing after deadly surge

by The Editor
August 27 2026
0

...

US pauses immigrant visa applications worldwide

US pauses immigrant visa applications worldwide

by The Editor
August 27 2026
0

...

Iran, Oman agree temporary Strait of Hormuz corridor

Iran, Oman agree temporary Strait of Hormuz corridor

by The Editor
August 27 2026
0

...

Uganda President’s son Muhoozi announces 2031 presidential bid

Uganda President’s son Muhoozi announces 2031 presidential bid

by The Editor
August 27 2026
0

...

State of the States

Kaduna pays N6.7bn monthly on inherited loans, says Uba Sani

Kaduna pays N6.7bn monthly on inherited loans, says Uba Sani

by The Editor
August 28 2026
0

...

Abia traditional rulers endorse Gov. Otti for second term

Abia State begins payment of N61.8bn gratuity arrears

by The Editor
August 25 2026
0

...

Kaduna State approves N300m for KASU lecturers

Kaduna State approves N300m for KASU lecturers

by The Editor
August 24 2026
0

...

Cross River governor assures SPAR fire victims of govt support, promises immediate intervention

Cross River governor assures SPAR fire victims of govt support, promises immediate intervention

by The Editor
August 24 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Police confirm abduction of corps members in Kogi

Police confirm abduction of corps members in Kogi

August 28 2026
Gunmen kill Kogi APC LG chairman

Gunmen kill Kogi APC LG chairman

August 28 2026
Ayra Starr to headline NFL London Game halftime show

Ayra Starr to headline NFL London Game halftime show

August 28 2026
Atiku faults Tinubu over cash transfer programme

Atiku faults Tinubu over cash transfer programme

August 28 2026

EDITORIAL REVIEW

Mass presence of governors in off-cycle elections – Punch

Mass presence of governors in off-cycle elections – Punch

by The Editor
August 27 2026
0

Clerics must preach peace, not division – Punch

Clerics must preach peace, not division – Punch

by The Editor
August 25 2026
0

Tax reform: Northern senators in closed-door meeting as bill scales second reading

Tax reform must end multiple taxation – Punch

by The Editor
August 24 2026
0

BREAKING: Kidnapped Oyo pupils, teachers regain freedom

Terror victims deserve care – Punch

by The Editor
August 21 2026
0

Unfilled tertiary education spaces debacle – Punch

Unfilled tertiary education spaces debacle – Punch

by The Editor
August 20 2026
0

Opinion

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Airtime credit dispute and need for clarity

Airtime credit dispute and need for clarity

by The Editor
August 5 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.